$2/101$

$2$

Multiple Choice

$5$ points

$[$GLO$1$A$]$ For the first few decades of its existence, Walmart's growth was fueled by a large domestic market. However, as the U$.$S$.$ market has become saturated, Walmart's attention has shifted to international expansion. Walmart's extraordinary success in the U$.$S$.$ can be attributed to a well$-$formulated strategy of low prices, supplier relationships, logistics$,$ and wide product mix. As Walmart, seeks to expand globally, it needs to consider its ability to replicate its U$.$S$.$ business strategy in foreign markets.

Note: The above mini$-$case statement applies to the below question and the two questions to follow. The statement will be repeated exactly as is above for the next two questions.

What factors are likely to determine Walmart's ability to replicate its success in foreign markets? $($Select the best answer from the options provided below.$)$

Entering and expanding into foreign markets will allow them to exploit new growth opportunities. To be able to leverage these growth opportunities, Walmart should choose to enter markets that are significantly different than their home market.

Global brand recognition of Walmart will allow them to succeed in any market that they choose to enter. As a result, the attributes of the market that they choose to enter will not have an impact on the likelihood of their success in those markets.

The similarity between the target market and the US will determine their success as customer buying habits will be similar and they will not have to adapt their strategy significantly to the local markets.

Entering markets with similar demographics, laws, economic conditions, and infrastructure will allow them to leverage their success factors such as economies of scale, superior logistics$,$ and supplier relationships in the foreign market as well.